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Booz Allen Posts EPS Beat and Sales Miss as Record Backlog, Dividend Hike Lift Shares

The consultancy lifted its profit outlook for fiscal 2026 following a quarterly earnings beat.

Overview

  • Adjusted EPS reached $1.77 versus the $1.29 consensus, while revenue came in at $2.62 billion versus $2.75 billion expected, down 10.2% year over year.
  • The company’s backlog rose 1.5% to a record $38 billion, with a quarterly book-to-bill ratio of 0.3x and revenue excluding billables down 6.7%.
  • Booz Allen now guides fiscal 2026 revenue to $11.3–$11.4 billion (slightly trimmed) and adjusted EPS to $5.95–$6.15 (raised), and it reiterated a mid-10% adjusted EBITDA margin.
  • The free cash flow outlook was lowered to $825–$900 million, and the company ended the quarter with $882 million in cash and $3.86 billion in net long-term debt.
  • The quarterly dividend was increased 7% to $0.59 per share, payable March 2 to shareholders of record on Feb. 13, and the stock rose about 5.6% premarket to $101.10.